Economists expect Singapore inflation to have eased in September

Oct 23, 2013

PHOTO: Economists expect Singapore inflation to have eased in September

SINGAPORE - Singapore's consumer price index (CPI) in September probably rose at a slower year-on-year pace of 1.85 per cent after four consecutive months of gains, a Reuters poll showed, as housing rental increases become more muted.

But the Monetary Authority of Singapore's (MAS) core inflation measure was likely up 1.8 perc ent from a year earlier, unchanged from August but above the 1.6 per cent average for the first eight months of 2013, due to higher service charges.

MAS warned that core inflation was likely to accelerate in 2014 as it stuck to its tight monetary policy stance of allowing a "modest and gradual" appreciation of the local dollar last week, sending the Singapore dollar higher.

The central bank excludes car and home prices from its core inflation measure as these are more influenced by government policies.

Singapore's September inflation figures are due out on Wednesday afternoon.